The output of Britain’s manufacturing sector rose by 0.2% in September. Early expectations predicted this exact outcome. The wider industrial production figure remained unchanged. A rise of 0.1% was expected.
GBP/USD reacts with a small rise. The pair is ticking up to 1.6075. It approached 1.690 earlier. Resistance awaits at 1.6110.
The month of October doesn’t promise to be much better: manufacturing PMI dropped into contraction zone in a report released last week. This is quite worrying.
While the British economy managed to grow in Q3 (by 0.5% according to the first release, there are still fears of contraction in Q4.
GBP/USD managed to hold its ground above the round number of 1.60 prior to the release. Resistance lies at 1.6110, followed by 1.62.
For more on the pound, see the GBP/USD forecast.
The big event of the week is the rate decision on Thursday. Most market participants expect no change after the latest decision to embark on more QE, although some think that another expansion is likely after the 75 billion pound expansion to 275 billion.Get the 5 most predictable currency pairs